Dodgers Corporation agrees on January 1, 2019, to lease equipment from Philips, Inc. for 3...
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Dodgers Corporation agrees on January 1, 2019, to lease equipment from Philips, Inc. for 3 years. The lease calls for annual lease payments of $14,622 at the beginning of each year. The lease does not transfer ownership does not contain a bargain purchase option, and is not a specialized asset. In addition the economic life of the equipment is 10 years. The fair value and cost of the equipment is $60,000. Both companies use straight-line depreciation and no salvage value. The appropriate discount rate for the lessee is 10%. The present value of the lease payments is $39,999. (Round to the nearest dollar.) At what amount should the Right-of-Use Asset account be reported on the balance sheet for the lessee as of December 31, 2019? 27,915 O 39,999 O 30.084 12,084 26,666
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